Trade Seeks Discount for Hong Kong Show

RAPAPORT... The Hong Kong Jewelry Manufacturers' Association (HKJMA)is asking the organizers of the September show for a 25% discount for itsmembers, citing difficult market conditions due to the trade war and socialunrest in the city. Many overseas exhibitors and buyers are likely to skipthe Hong Kong Jewellery & Gem Fair following government warnings about visitingthe municipality, the HKJMA said this week. Domestic companies have also expressed"anxiety" about the event, with some stating they might not attend in order to minimizelosses, Wings Cheung, the association's general manager, wrote in a note tomembers. "This is the mostchallenging time for Hong Kong's jewelry sector since the financial crisis,"Cheung stressed. The group will meet with Informa, the coordinators of theshow, to propose a reduction in exhibitors' fees. It will also request lower pricesfor next year's June and September shows, which Informa organizes, and willhave similar discussions with the Hong Kong Trade Development Council (HKTDC),which operates the March fair. The show is still due to take place from September 16 to22 as planned, Informa told Rapaport News last week. "We are closelymonitoring the situation following recent public incidents at Hong KongInternational Airport," the company added Wednesday. "We are, however, hopefulthat the situation will calm down." The airport is the primary entry point for visitors toHong Kong, as well as being adjacent to AsiaWorld-Expo, which is scheduled tohost the show's loose-diamond exhibition. Demonstrators and police officershave also clashed near the Hong Kong Convention & Exhibition Centre in theWan Chai district, the venue for the finished-jewelry section. As unrest in Hong Kong escalated this week, theassociation advised its members to show extra financial prudence, and to takespecial care with overseas travel. Its chairman, Benny Do, has asked theCommerce and Economic Development Bureau, the Hong Kong Export Credit InsuranceCorporation and the Federation of Hong Kong Industries for a meeting to discussthe challenges. The group has also cancelled the November Miss JewelryHong Kong 2019 pageant to save costs ahead of the JMA Hong Kong InternationalJewelry Show, which begins November 28. Diamond and jewelry demand softened in the region evenbefore the protests started, Cheung noted, as the trade dispute between the USand China has impacted sales over the past year. US President Donald Trump's recentaddition of a 10% tariff on many Chinese goods, starting September 1, hasworsened the situation, he added. Neither Informa nor the HKTDC had not responded to arequest for comment about fees at press time. Image: Protests at Hong Kong International Airport on August 11. (Shutterstock)